Proud to be Indifferent?
December 2006 – The Nationwide BS has attracted widespread criticism over a series of TV ads it has been running to attract new business. These are supposed to demonstrate that it does not differentiate between existing and new members on cheap mortgage deals because it is a “mutual” society. However those members remortgaging do not get the same deal.
Yorkshire Building Society
October 2006 – The Yorkshire BS is to buy the savings business from the US bank MBNA. This follows the purchase of Abbey’s Sharesave scheme last June. This will ensure the Yorkshire’s position as Britain’s third largest building society.
Nationwide & Portman Building Societies
September 2006 – Arrangements have been made for the Nationwide BS to take over the Portman BS next year with windfalls to encourage Portman members to vote and support the plan. There will be no votes or windfalls for Nationwide members. Meanwhile the Portman is set to take over the Lambeth BS this year. Both societies rarely appear among the top performers for interest rates on savings accounts and Nationwide has not passed on the full increase to savers following the latest bank base rate increase. Hopefully this will enable the Nationwide to compete with banks in offering better terms and facilities for its members than it does at the moment.
Saffron Walden, Herts & Essex Building Society
September 2006 – There has been no news following the announcement by SWHEBS that it would change the name to Saffron BS in September.
Kent Reliance Building Society
September 2006 – Kent Reliance BS is offering lifetime mortgages to help people to minimise their inheritance tax burden. Click here for Sunday Telegraph report on “The Danger of Deathbed Mortgages”.
Britannia Building Society
September 2006 – The Britannia BS is offering savings accounts linked with a number of football clubs including Chelsea, Manchester United and Arsenal. If you wish to help out any poor footballers these accounts offer 2.3% on £100 to you and up to 1% to the club.
Nationwide Building Society
July 2006 – The directors have provided a very undemocratic bright red “quick vote” option that allows you to give all your votes to the chairman for the benefit of the directors. They are also offering some of your money to a charity, chosen by them, in exchange for your votes.
Nationwide’s AGM is being held once again at the International Convention Centre in Birmingham. So numbers of attending members will be low and costs will be high. In their “Voting Guide” Jeff Prestridge of the Mail on Sunday advises that it is your society, you own it and you SHOULD have your say. How much say did members have on the above?
High (paid) Society
June 2006 – Jeff Prestridge reports in the Mail on Sunday that while savings interest rates were being cut and cut again the directors kept their snouts in the trough. Nationwide BS chief executive Philip Williamson received another massive pay increase last year at 9% taking his pay to £1,329,000. However in percentage terms West Bromwich BS chief executive Andrew Messenger received the largest increase of all at 27%.
Universal & Newcastle Building Societies
May 2006 – The Universal BS, a small Newcastle based building society has announced that it is to be taken over by the Newcastle BS with effect from the end of 2006.
Kent Reliance Building Society
May 2006 – KR BS has announced that it is dropping the mandatory charitable sign-away clause for new members. This was originally introduced to prevent people disrupting business when a potential windfall situation occurred.
KR has been closing branches and with only two now in existence the Chief Executive Mike Lazenby has also announced that it plans to become the first internet-only building society and will change the name to the Internet Building Society.
Newcastle Building Society
March 2006 – Jeff Prestridge in the Financial Mail reports that chief executive Robert Hollinshead had a pay increase of 14% despite the societies profits falling by 42% mainly resulting from the costs of closing 19 branches. Click here for full report.
Survival Fight for Cheshire Building Society
March 2006 – The Mail on Sunday reports a £10m fraud at Cheshire BS has plunged the organisation into a crisis. Click here for full report. It is also reported that Cheshire BS rejected a takeover offer from the predatory Portman.
Windfalls or Shortfalls – the true cost of demutualisation
March 2006 – A report produced by the Association Of Chartered Certified Accountants for the All-Part Parliamentary Committee for Building Societies and Financial Mutuals states that demutualisations have been good for directors but bad for members (which highlights the lack of accountability in the industry).
The committee is reported to have received over £7,000 in 2005 from the BSA.
Click here for a link to the report.
Click here for Investors Association comment.
Click here for Times report on the business of lobbying.
Portman and Lambeth Building Societies
March 2006 – Portman BS has announced that it is to take over Lambeth BS.
Click here for thisismoney report. Click here for Investors Association forum discussion on this subject.
Voting
February 2006 – Beware it is election time again for many building societies. Time for members moment of “democracy”. Time to vote for people who have already been appointed as directors.
Building Societies
February 2006 – The BSA is concerned about the continued disappearance of building societies and is seeking a change in the law governing societies. Click here to see thiismoney report.
Nationwide Building Society
January 2006 – The Nationwide BS launched a higher paying current account and followed this up two days later by cutting the rates on other savings accounts.
Leeds & Mercantile Building Societies
January 2006 – The Leeds BS (previously known as the Leeds & Holbeck BS) has announced that it is to “merge” with the Mercantile BS.